But, if as a seller, you can get into the buyer's mindset, the sale of your home can come faster and for more money.

Understanding the way buyers think involves seeing things not from your perspective but from your potential buyer's mindset. It can sound easy but actually it's often harder to do than most sellers think. The psychology of buying is driven by emotional experiences, money, and timing. With that in mind, sellers can help create optimal circumstances that literally help walk the buyer through the process and completion of the sale of your home.

It starts with a feeling. When you meet someone for the first time, you form a first impression based on a feeling. That's exactly what happens when buyers set foot into your home. Work with an experienced agent to learn exactly what kind of impression your home is giving off. If it's a small home, make sure it's not overfilled and cluttered.

Pick up all the loose clutter that's floating around. Throw out old magazines. People like to see things that are streamlined or clean or fresh looking. There's nothing worse than walking into a place and seeing a stack of magazines all over the place or an unmade bed.

Go the extra step and take care of items that might have been overlooked for quite some time. Steam clean the carpets, the upholstery, the furniture, if that's what's needed. Have the windows cleaned, light fixtures cleaned. Make it feel clean when you walk in.

Go back to basics. You may love your turquoise carpet but do you really think buyers will? Getting inside the buyers mind will help you answer these questions. You can also pick up home décor magazines and see what appeals to the masses. You don't have to change everything in your home, but going back to basics in a few areas will help buyers see how your home can become their home.

As soon as buyers see a really loud red, orange or lemon-green color they automatically think about re-doing. That, of course, means the buyers are already beginning to calculate the amount of money they need to take off of the sale price in order to get the home in the condition they would like it.

If instead you stick with neutral colors such as painting the walls off-white, light beige or Navajo white, you have a better chance in preserving the sale price.

Repair anything that looks torn, worn or broken If you walked into a retail store and saw a garment that you liked but it was torn or missing buttons, chances are you'd search for another one or ask for a discount if that were the only one of its kind.

That's what buyers will do with your home when they spot torn screens, garage doors that don't open, or broken light fixtures that are hanging out of the wall. Buyers, if at first they don't get completely turned off and walk away from the sale, will first begin to think that there is more damage to the home than what they're able to see and then they start to calculate the cost of repairing those damages. But buyers often exaggerate the amount of money needed to fix the repairs.

In today's market people are looking desperately to find out what's wrong with a home so that they can lower the price.

In the buyers' minds, they come up with some kind of incredible price to fix repairs. In their mind, they go way overboard and eventually it affects the bottom line price for the seller.

Don't miss an opportunity to get the word out about your home being listed for sale. It only makes sense to let your neighbors know. By doing this your neighbors can sometimes become great facilitators and supporters of the sale.

Most people are visual buyers. If the home doesn't look clean, spotless, and repaired then the buyer thinks what's behind the walls, how much more money do I have to put into this home.

Remember understanding the psychology of the buyer's mindset can help you sell faster and for the price you really want.


Written by Phoebe Chongchua

Its been a while since we last updated... Corban is already almost 7 months! Last month was a busy one so we didn't get a chance to update you on his progress! So, here is an update...

At the beginning of May Corban had his 6 month check-up! Everything was good and the doctor said he is very healthy! He was about 26 in long (70th percentile for age) and weighed in at 16 lbs and 2 oz (20th percentile)! The size of his head jumped from the 20th percentile at his 4 month appointment to the 80th at this appointment... He does have a pretty big head (maybe he'll be a genius!) He also had to get three shots, one was a liquid one that he took orally and the other two were a shot in the leg. He took the oral one very well, in fact the nurse said she's never seen a baby gulp it down so fast!! (He loves to eat... ANYTHING!!)

The doctor also told us we could start feeding him baby food now. So, we started him off with carrots, and he loved them! He is such a good eater! Each week (or at least 3-4 days) we introduce a new food, so we can make sure he isn't allergic to anything. So now he is eating carrots, peas, sweet potatoes, apples, prunes and pears. This week we are going to start him on avocado (its good for their brains!) He is a eating machine and he loves food! He even tries to steal mommy and daddy's food! He still hasn't gotten any teeth in!! Although mommy did see four white lines on the bottom jaw instead of just two... so maybe all four will come in at once? We'll see!! At the beggining of this month he also started sitting up on his own! He can sit for a long time with out falling! He is also trying to crawl, he gets up on all fours and rocks back and forth! He has also gotten really good at rolling.. mommy and daddy have to really watch him now so he doesn't roll off of anything!

He had another opportunity to swim this month and this time he stayed in the pool for about 30 mins with daddy! He had such a fun time splashing around! Corban loves the water! This month he got to go on his first real long road trip to Camp Pendelton in California (its near San Clemente). While there, he got the chance to go camping on the beach with mommy, daddy and the Seniors from the Refuge our churches youth group! He loved the ocean and the sand! He thought the waves were pretty funny too, mommy took him down the the shore and helped him stand with his feet in the water! Everytime the water came up he squealed and laughed! We didn't take him out into the ocean though because the water was too cold so, we brought his inflatable duck tub and filled it with warm water and put it on the beach so he could sit in it, stay warm and enjoy the beach! Daddy also buried him upto his waist in the sand! And Corban loved it! He kept grabing the sand and squishing it in his hands! He also got to go to his first baseball game at Petco Park!

Here are a few pictures from our trip:
 
  

This month (and a half) was an exciting one for Corban! He got to experience alot! Stay tuned for next month's update.. he just might be crawling! And maybe he'll finally get those teeth in?!

Container gardening can be carried out nearly anywhere in the condo world. For successful blossoms, condo owners will need a power and water source, to help with the harvest. Helios Landscaping spokesperson Reuben Butterfield says in National Post, "The flexibility of container gardening has given gardeners the ability to take their hobby with them as they move."

Going "green" has a lot of unit owners creating micro-gardens in their micro-dwellings, a market of personal gardening that has grown 15 percent in the last three years, says Suzanne Wilson of GardenWorks.

Renowned international horticulturalist W.O. Baudoin writes, "A microgarden uses low-cost and easy to manage soilless culture technology" to create a garden on a ledge, so to speak, allowing city-dwellers to create healthy living environments in small spaces.

For an international look at how condo owners grow food on the terrace, check out CityFarmer.info.

Published: May 13, 2008

That's especially true when it comes to home prices.

In a rising or falling market, data that is more than a month or two old is too stale to satisfy the appetites of buyers and sellers hungry for the most current prices.

The Office of Federal Housing Enterprise Oversight (OFHEO) is beginning to get the message.

It recently added a more current monthly report to its existing quarterly Home Price Index and the difference is quickly apparent.

OFHEO's last quarterly report, the fourth quarter of 2007, revealed home prices nationwide dropped 1.3 percent during the previous year.

OFHEO's first new monthly Home Price Index reveals home prices were down 2.4 percent in February, compared to 12 months earlier.

The new monthly report still lags by about two months, but it's available more frequently. The OFHEO's quarterly report, on the other hand, contains some data that's nearly five months old.

Prices should also reflect the local market, where you actually buy and sell homes.

OFHEO's new monthly report zeros in only on a regional level. The quarterly report gives some city level data, but it lags far too much to be home buying- or home selling-friendly.

The S&P/Case-Shiller 10-City Composite offers a closer look. It reveals home prices have dropped 13.6 percent in the past year ending in February. It's broader 20-City composite reveals a 12.7 percent annual decline.

For the most accurate, current home prices, whenever possible, make sure your home price data is as frequent as possible and focused as much as possible on your city or neighborhood. That means checking with your local real estate agent for the numbers.

Published: May 13, 2008

Justo says very often heating and air conditioning systems are overlooked when buying a home. "People are more concerned with what the countertops look like," says Justo. He adds, "And then they move into the house and they find they can't be comfortable in their own home -- now, it's a major concern to them."

Knowing what to look for and having experts inspect your heating and air conditioning systems regularly could save you lots of money and headaches.

Justo says for starters, "Make sure the air conditioning unit that's sitting in the yard is safe. Especially if you have children, you want to make sure that they can't stick their fingers into the louvers."

With a furnace, Justo says be leery if it's a couple of decades old. "If you have a furnace, say, over 20 years old. It's kind of like driving a car on bald tires. It's one of those things where it works, but do you want to put your family in the car with those tires to go get groceries? And the answer is typically no," says Justo. He says the average life of a furnace is typically 20 to 25 years.

It's important to check the furnace not only to make sure it's heating properly but also to make sure that there aren't any carbon monoxide leaks. "A lot of the older furnaces lack the safety components that are available today in the newer furnaces. The newer furnaces have a lot of safeguards to protect the family," says Justo.

A heating system is usually the kind of appliance that is only purchased once or twice in a lifetime. "So, it's one of those things, don't wait until it breaks because when it breaks, you have the potential for fire, carbon monoxide, things like this. You're better off replacing it on your terms," explains Justo.

Having the proper electrical circuit setup is also critical. Justo says that it's important to make sure the breakers and circuits are properly protected. "Especially an air conditioning system or a furnace is really best on its own dedicated circuit," says Justo.

Making sure city codes are followed could save you other costly expenses. "If you [buy a home with] a furnace or an air conditioner that's illegally installed, now you're in a situation where you go to replace it, the city inspector may not pass it," says Justo. He adds, "Having a product that's installed to code so that you're not left holding the bag a year later or three years later is very important."

Check the placement of the furnace. "If you've got a two-story home and your air conditioning/heater/furnace system is located on the first floor, there's a very, very good chance that it won't cool the second floor properly because so many systems were designed … for heat only application," says Justo. Hot air rises because it's much lighter than cool air. Justo says what can happen is, "You put in an air conditioner and it won't air condition very well for you because the furnace doesn't have the capacity to move that heavier air to the top floor," says Justo. It's best to call an expert to test the heating and air conditioning systems. Sometimes even if you can feel cool air coming out of registers there still could be a problem with the system. For more information visit, asiheatingandair.com

An overall check of the heating and air conditioning systems will give you the opportunity to know what maintenance or repair expenses are likely to come up in the future.

Published: May 2, 2008

Everyone has a few (or lots) items they would like to get rid of. Sometimes its a question of "how"? Here are a few tips on how to dispose of some unwanted items: 

Electronic Equipment

• Check online for local disposal services.
• Depending on their condition, try selling items on eBay or craigslist.
• Plan a garage sale, giving your friends and neighbors a chance to find an item they may need or want.
• Donate to local charities
• Check with some neighborhood schools and see if they might have a home for some of these items.
• Advertise in your local paper. You might get lucky and have just what someone was looking for.

Household Items

• Household items are greatly needed by many. Clothing, toys and home products are the perfect donation to your local charity.
• Everyone loves to browse through their neighbors' old treasures. Plan a garage sale. It can be a fun way to gather with friends and neighbors.
• We all know the difference between what  can be recycled and what is trash. Throw away items that are no longer useful.
• There are countless items listed on eBay everyday. See if you can't turn some old items into easy cash.

Hazardous Waste

• Check online for local disposal services. Ridding yourself of hazardous waste is a serious consideration, and not following the rules can result in heavy fines.
• There are many local services that you can either bring your waste to or that will come and get it. Don't take shortcuts on this even if you only have small amounts, which might seem easy to dispose of.

*Article taken from the Buffini & Company newsletter May 2008

Knowing how to best organize our lives varies greatly from person to person. There are so many resources available to help you not only de-clutter your home but avoid turning your garage into a househole dumping ground. Looking at your lifestyle and designing your living space to fit that lifestyle is the first step in creating an environment that is harmonious and best reflects who you are. You are not alone. Knowing when to part with long held "treasures" is a battle for most people. But many of those "treasures" are actually the culprit when it comes to keeping things clean, simple and managable. Be honest with yourself. Know the difference between what you need and what you don't need. Tame the beast and streamline your life.

Gardening Tools
Keep gardening tools near the door that leads closest to the yard. This saves you time and energy and helps to keep the area clean. Consider keeping your tools in a handy moving cart, which can save you many trips back and forth. These can be purchased with slots for rakes and larger items. Keep fertilizers and other hazardous materials in locked cabinets or at least away from the reach of children.

Sporting Goods
Sporting goods are best organized by how often they are used and who generally uses them. Winter equipment is best kept away from the floor where it can slid around and be damaged. Placing it in high areas attached to hooks against the wall making sure that they are reachable for kids yet close enough to the garage door to avoid scratching cars.

Tools
Investing in a work table or building one yourself enables you to keep tools in an orderly fashion. Using hooks for hanging tools and glass jars for nails and screws can cut your work time by eliminating the time spent searching for a necessary item. If the size of your garage limits you from building a work table, storing tools in bins with labels on them is also an effective means of organizing.

Miscellaneous "Stuff"
Memorabillia, such as scrapbooks and old family treasures, are best kept out of the garage. Moisture can damage these items. Holiday decorations can be stored away in bins so they are easily found but tucked away well enough to eliminate clutter. Chances are that there are old boxes of clothes and toys. Rule of thumb: If they are stored in boxes in the garage, it may be time to part with them.

*Article taken from Buffini & Company newsletter from May 08

We can all use a little order in our lives. If your home has become overcrowded or you are having trouble finding what you are looking for, it may be time to reassess your organizaional skills. Creating orderly systems, and sticking to them, will produce a more pleasant living environment and even makes housekeeping easier.

Getting Started
It takes plannig to create an environment that is both harmonious and comfortable. Learning to say goodbye to those "treasures" that we rarely use or even look at may cause you some temporary separation anxiety, but the space you create will make up for the loss. It seems like a daunting task, but it can be fun and invigorating once the process begins, and it can do wonders for your spirit! Remember, being committed to getting organized also means being organized.

The Kids Room

• Your kids have toys and clothing that they have outgrown. Now is the perfect time to teach them charity by helping them collect items they can donate to others.
• Store toys in bins and boxes that are clearly labled so kids can put them away themselves.
• Find colorful storage bins that make cleaning up as much fun as playtime.

The Closets

• Sort closet items into groups. Clothes that are worn often should be the most accessible in your closet. Seasonal clothing should be packed away in storage containers and placed on top shelves that can be easily accessed as the weather changes.
• Always keep your closet floor clear of shoes. Allowing them to pile up on the closet floor can limit your access and can lead to damage if the shoes are stepped on.
• Keep like items together such as shirts, sweaters, pants and dresses.
• Use several different storage systems including shelves, drawers, shoe cubbies and upper and lower poles to maximize space and keep items separated and organized.

The Kitchen

• Group things that pertain to a particular task together. This will minimize your search and make better use of your time.
• Determine the general flow of your kitchen. Keep glasses near the sink or the refrigerator.
• Maximize your work space by keeping countertops clear of unnecessary items.
• Consider creative storage solutions- for example, transfer spices to sleek. labeled glass tubes.
• Don't make your kitchen a collection area for everything "waiting" to be put away- mail, tools, books, the kids' homework and everything else that does not belong there.

 A little creativity will go a long way when you are re-organizing your space! Think outside of the box and have fun with it!

*This info was taken from a Buffini & Company newsletter from May 2008

Corban is already 5 months old! He's growing up so fast! This month was relatively slow (compared to previous months!) But Corban is still growing like a weed! He gained about 2 lbs and maybe an inch or so! He had a doctor appointment this month but only for shots! He had to get 3 shots :( And he didn't take them so well this time. (The first round of shots at 4 months, we had no problems.. he even slept the whole day afterward) This time, he ran a fever of 100.3 and was crabby and not sleeping well for about 3 days after the shots! It wasn't fun for mom and dad! But at least he is experiencing this while he's still young and won't remember the pain when he gets older!

This month he got to attend another wedding. His mommy's best friend (auntie Rachel) got married! And Corban got to be a part of all the festivities! Including hanging out with the ladies while they were getting ready the morning of! (He's a ladies man already! Such a flirt!) He also got to dress up all cowboy for the rehearsal dinner, he looked so cute in his flannel shirt and jeans! He had such a fun time!

His teeth still haven't come through but mom and dad can see them sitting underneath the gums! Hopefully they'll come through soon! It seems so painful for him! Mom and dad give him teething tablets to try to ease the pain a little bit! He's very close to sitting up on his own! His neck and back muscles are very strong! Also, this month Grandma and Grandpa got him a walker and he loves it! He can scoot himself backwards a little bit while in it and he is very good at grabbing and playing with the toys on it! His motor skills are developing very well, he is good at picking things up and placing them in his mouth!!

Thats all for this month, check in next month to see if he is sitting up on his own and if his teeth have finally came in!!

That means where you live will often dictate the maintenance chores you can expect to perform, according to the American Society of Home Inspectors the foremost national trade group on the subject.

"At ASHI, we work closely with our members to identify maintenance issues and track regional defects that plague homeowners," said Brion Grant, 2008 ASHI president.

Region-by-region, based on tens of thousands of ASHI member inspections around the nation, here's where to expect what chores you'll have to consider.

Northeast -- Framing issues are a top concern here, particularly underframing, or the presence of undersized and or over-spaced beams in a home’s framing. A prevalence of fire retardant-treated plywood, often in attics, has become an issue in newer homes in this region, especially in town homes. When the plywood reacts to high temperatures it becomes structurally unsound and can crumble, creating a safety hazard for roof inspectors or others walking on the roof.

Older homes' modern heating equipment can cause condensation to form in older chimneys that weren’t designed for low-flue gas temperatures. That can cause water stains, efflorescence and deterioration of the chimney.

Southeast -- The heat of the sun can deteriorate materials more quickly than in other parts of the country. Roofs with a 30-year life expectancy may survive only 15 years in the Sunshine State of Florida. Termites thrive here too. Be on the lookout for subterranean cellulose eating insects and flying drywood termites too, especially if your house is 20 years old or older.

Midwest -- Water intrusion is a common issue in the Flood Belt. Likewise expect wood rot in trim and siding. The proliferation of basements also makes the region a hot spot for water and moisture intrusion. Water heaters double as both a furnace and water heater, but plumbers forget to attach venting fixtures or drains when new water heaters are installed. Expect plumbing problems. Incorrectly added decks also show up repeatedly as an area of concern.

Northwest -- Overworked drainage systems, exterior flashing component problems and poor exterior grading makes moisture intrusion a problem in the Northwest. Look for standing water in basements and crawl spaces. Topography and heavy rainfall are also issues. Homeowners who live in houses built on slopes should contact a geotechnical engineer or similar expert to identify potential soil settlement problems.

Southwest -- The desert Southwest has the same hot sun problems experienced in the Southeast. Roofing, vinyl windows and siding take the brunt of the heat. Expansive soils can also create upward structural pressure caused by water build-up under the foundation.

Said Gant, "Many of these issues, if left unexamined, could undermine the condition and possibly compromise the safety of the home and its occupants."

ASHI's report is in line with Quality Built's study of home inspections of homes built by 900 different home builders in 27 states.

In 2005, after the risk management services company gathered the inspection results on nearly 21,000 newly built single-family homes and more than 11,000 newly built multifamily homes, the three most common problems it found were defects in the building envelope (41 percent), which could lead to moisture intrusion and mold; framing and structural elements (34 percent), which can affect a building's integrity during rough weather conditions or earthquakes; and in the plumbing and electrical systems (8 percent).


Written by Broderick Perkins

You can easily clean up bad indoor air quality at home with just a few lifestyle changes and adjustments in your air quality management.

According to the American Lung Association, here's how.

• The best way to freshen air is to clean up the source of odors and ventilate, such as running bathroom exhaust fans. Run fans that exhaust to the outside, such as those in the kitchen or bath, or open windows and place window fans to the blow air out. Add ventilation when you use household cleaning products indoors.

   

• From cleansers to pet shampoos, some household cleaners leave behind harmful chemicals or give off gases that can irritate or harm your lungs. Read the small print on labels before purchasing any household chemical, including health and beauty products and air "fresheners." If the product has an Environmental Protection Agency (EPA) number, the product is classified as a pesticide but that doesn't mean it's safe. Labels like "organic" and "natural" do not mean a product is safe for everyone either.

   

• Don't be so quick to turn off exhaust fans in the bathroom or kitchen. They help remove both moisture and air pollutants. Install a quiet, low-energy model. The air inside your home, where you spend most of your time, can be two to five times more polluted than air outdoors.

   

• Change the way you clean. Dust mites are everywhere and they trigger allergic reactions from sneezing to asthma attacks. A central vacuum cleaner vented to the outdoors is best, but a vacuum cleaner with a micro filter bag or High Efficiency Particulate Air (HEPA) filter will also help remove allergens. If the yuck factor motivates you, consider this -- dust mites feed on skin flakes. Clean up one yech and you get the other.

   

• Hard surface floors like wood, tile or linoleum are easier to clean than carpeted floors. Real hard wood flooring is a better deal -- when it comes to breathing easy -- than engineered wood products used in flooring which can contain volatile organic compounds (VOCs).

   

• Damp mopping or using a damp cloth to clean hard surfaces at least once a week is a better approach than "dry dusting" which just stirs up the mites and other particles.

   

• Relative humidity higher than 50 percent helps not only mold and dust mites to thrive, but creepy cockroaches too.

   

• If someone in your family has allergies or asthma, it's important to encase their mattress and pillows in dust proof or allergen impermeable covers and replace wool or feather-stuffed bedding materials with synthetic materials. Wool or feather stuffed bedding attracts more dust mites than synthetics.

   

• All combustion appliances that burn gas, oil or wood emit carbon monoxide and other dangerous gases. Properly installed appliances vent the fumes outside, but you should have a carbon monoxide detector in your home and smoke alarms, installed as close to sleeping areas as possible.

   

• Paint and use other finishing products with reduced or no VOCs to lower the amount of chemical emissions introduced into the home.

   

• When possible, swap out washable, reusable heating and air conditioning filters for washable electrostatic filters that are more effective at capturing small particles that can get trapped in your lungs. Wash the filter at least monthly, more frequently for high pollution conditions, say, during building construction or renovation.

   

• Adding a whole-house air filtration and ventilation system (like the so-called Energy Recovery Ventilator) is like giving your home a set of lungs. The system provides your home -- the hearth -- with a continuous supply of fresh, filtered air.

For more clean air management assistance, visit the American Lung Association's new online Health House (http://www.healthhouse.org) where you can test your clean air knowledge and ferret out information tailored to meet household needs.


Written by Broderick Perkins

In Freddie Mac's results of its Primary Mortgage Market Survey (PMMS) the 30-year fixed-rate mortgage (FRM) averaged 5.85 percent with an average 0.4 point for the week ending March 27, 2008, down from last week when it averaged 5.87 percent. Last year at this time, the 30-year FRM averaged 6.16 percent.

The 15-year FRM averaged 5.34 percent with an average 0.4 point, up from last week when it averaged 5.27 percent. A year ago at this time, the 15-year FRM averaged 5.86 percent.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.67 percent, with an average 0.6 point, up from last week when it averaged 5.56 percent. A year ago, the 5-year ARM averaged 5.88 percent.

One-year Treasury-indexed ARMs averaged 5.24 percent with an average 0.5 point, up from last week when it was 5.15 percent. At this time last year, the 1-year ARM averaged 5.43 percent

"Long-term mortgage rates were mixed, but relatively unchanged in the past week as the latest economic indicators came in much as expected," said Frank Nothaft, Freddie Mac vice president and chief economist. "For instance, the index of leading indicators continued to fall for the fifth straight month while consumer confidence reached a 5-year low.

"On the housing front, house prices keep declining across the nation. The S&P/Case-Shiller Home Price Index was the most recent to document the drop in prices, reporting a decline of 2.3 percent in from December to January in its 10-City Composite Index and a cumulative decline of 11.4 percent from January a year ago. Lower prices improve affordability and the National Association of Realtors reported that its home affordability index was at the highest level in nearly five years, contributing to a pickup in existing home sales in February."

Curb Appeal: Stamped Concrete

Curb appeal is the first impression of a home or property as viewed from the street. And it can actually increase the value of your property for resale, or better yet, cause envy from nearby neighbors.

One of the hottest trends right now in curb appeal is the creation of distinctive driveways.

Options for driveways used to be pretty simple, asphalt or concrete. But these days the possibilities for concrete are practically limitless, allowing you to take your carport from blasé to beautiful.

Stamped concrete, often referred to as "patterned concrete" or "imprinted concrete," is concrete that has been designed to resemble other more expensive materials such as brick, slate, flagstone, tile or even wood. And the cost effectiveness, easy maintenance and endless design possibilities are making stamped concrete a must-have.

In stamped concrete you can incorporate decorative patterns, even using other elements such as bond brick, hexagonal tile, worn rock or stone. And the use of stains can make your home all the more elegant and inviting. Some of the color choices include Green Lawn, Cola, Aqua Blue, Venetian Pink and Sandstone Cream.

If you have an existing driveway, there are ways to get a lasting makeover without starting from scratch. For instance, you can resurface your concrete with overlay systems to eliminate cracks or blemishes, or you can choose to permanently engrave or sketch patterns for an enhanced appeal.

Home Warranty vs. Homeowner's Insurance

A "home warranty" is typically a promise by a builder or manufacturer to make repairs or provide replacements in the event a product or system doesn't work. Such warranties are inevitably "limited" warranties, meaning the builder or manufacturer is only taking on so much liability.

When looking at warranties always ask about dollar limits, deductibles, fees and charges to make a claim and the length of the warranty period.

Homeowner's insurance is the fire, theft and liability coverage required when you get a mortgage and which all homeowners should have.

There are varying levels of protection, but you at least want enough coverage to assure the full replacement of the property in the event of disaster. For specifics, speak with an insurance broker in your community.

Seek Property Bargains for Your IRA

Real estate practitioners who are spying good deals these days and who are confident real estate isn’t far from a turnaround might consider investing their Individual Retirement Account funds in property.

"A lot of people prefer real estate. That's where they've been successful and that's what they're comfortable with," says Bill Humphrey, principal of Entrust New Direction, based in suburban Denver. The office is a member of The Entrust Group, a national firm that serves as an administrator in nontraditional IRA investing.

Compared to buying stocks or mutual funds, investing a retirement account in real estate is complex and riddled with IRS regulations. Working with a knowledgeable self-directed IRA administrator is important.


Written by Realty Times Staff

Credit scores are used by financial institutions to determine whether they should lend money to a potential borrower and, if so, what interest rate should be charged. A higher score means an applicant is statistically less likely to default on the loan so they get a lower interest rate.

Ignoring your credit score could be a costly mistake. As an example, let's say you bought a $400,000 house with a 30-year fixed-rate mortgage at a 6-percent interest rate. Over the term of the loan, you would pay interest charges of $463,354. If, however, you had a lower score and your bank bumped your interest rate up to 8 percent, you would pay interest charges of $656,619. That's a hefty difference of $193,265.

There are many credit scoring systems available to lenders, but FICO scores are by far the most commonly used. The system was developed by the Fair Isaac Corporation back in the 1960s. Technically, you have three different FICO scores -- one for each of the three major credit reporting agencies.

Knowing how FICO scores are calculated can help you make better decisions about your credit. At a minimum, you should be aware of some of the most common misperceptions:

I always pay my bills on time so I must have a high credit score.

Paying your bills on time is clearly a critical factor, but it only accounts for 35 percent of your overall FICO score. It also looks at four other components: the amount of debt you owe (30 percent), the length of your credit history (15 percent), the number of credit accounts you've recently opened (10 percent), and the types of credit you use (10 percent).

Consolidating multiple credit cards will increase my score.

Consolidating credit cards could make it easier to pay down debt, but your FICO score could actually decrease if you consolidate to fewer accounts with balances that are closer to the maximum available credit. FICO considers you a lower risk if you have multiple credit accounts, keep the payments up-to-date, and maintain balances between 25 percent and 35 percent of the available credit.

I don't have any credit cards or other major debt so I can't have a low score.

Your FICO score doesn't take into account your net worth or your income level -- it only looks at your past borrowing history. Your FICO score will be lower if you haven't established a long-term borrowing history with multiple creditors.

Closing a credit card is better for my score than keeping it open.

Closing a credit card will not necessarily hurt your score in the short term, but you will eventually lose the positive effects of the long-term credit history that you've established with that lender.

I shouldn't shop around for a mortgage or other large loan because credit inquiries hurt my score.

A large number of credit inquiries will lower your score, but FICO is smart enough to know when you are rate shopping. Inquiries for similar types of credit are bundled if they're made within the same 14-day period.

I shouldn't check my credit report more than once a year because credit inquiries hurt my score.

Checking your own credit report does not affect your score, so feel free to check it as many times as you'd like.

If you want to learn more about how FICO scores are calculated, visit Fair Isaac's web site at www.myfico.com. They offer a host of informational materials and credit score tips. And while you're at it, you can also order your three scores for a small fee.

Becoming more knowledgeable about FICO scores could help you to keep those pesky interest rates at a minimum. With just a small investment of time, you will be able to make smarter credit decisions and take proactive steps to increase your score.


Written by Rick Salmeron